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Discussing DSGE

Level: advanced
Steve Keen | ProfSteveKeen, 2013
Perspective: Complexity Economics
Topic: methodology
Format: Lecture
Duration: 00:13:25
Link: https://www.youtube.com/watch?v=l1VS6u1V_Jo

Summary

Steve Keen discusses DSGE modeling and microfoundations by asking the question if it is ideologically possible to derive macroeconomics from microeconomics. Using the example of the Sonnenschein–Mantel–Debreu theorem, Keen argues that on each level there are new complexities which can't be entirely derived from the level below. Hence, according to Keen, economics mustn't be about equilibrium but about permanent desequilibrium in order to account for economic complexity and dynamics.


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